Itaú Asset Management, the investment arm of Brazil’s largest private bank, Itaú Unibanco, has recommended that investors hold 1% to 3% of their portfolios in Bitcoin next year.

In a new research note, Renato Eid of Itaú Asset said the global backdrop of geopolitical tensions, shifting monetary policy and ongoing currency risks strengthens the case for adding Bitcoin (BTC) as a complementary asset.

He described Bitcoin as “an asset distinct from fixed income, traditional equities, or local markets, with its own dynamics, return potential, and — given its global and decentralized nature — the currency hedging function.”

This proposal comes despite a turbulent year for Bitcoin. The asset started 2025 near $95,000, fell around $80,000 during the tariff crisis, then rose to an all-time high of $125,000 before stabilizing again around $95,000.

Related to: Brazil’s cryptocurrency tax takeover signals the end of an era

Bitcoin can keep portfolios stable amidst currency fluctuations

Brazilian investors felt Bitcoin’s fluctuations more intensely than global traders. The Brazilian real has risen by about 15% this year, amplifying local losses for local investors.

However, Eid said that a small, fixed Bitcoin allocation could mitigate risks that traditional assets fail to hedge. Citing the bank’s internal data, he said there was a low correlation between BITI11, the locally listed Bitcoin ETF, and other major asset classes, supporting the case for adding a modest BTC position to improve the portfolio balance.

“By allocating about 1% to 3% in their investment portfolio, investors will actually benefit from assets that generate diversification,” the bank wrote.

Related to: Why Brazil uses Bitcoin as a treasury asset and what other countries can learn

Itaú Asset launches a dedicated crypto module

In September, Itaú Asset created an independent cryptocurrency division and appointed former Hashdex CEO João Marco Braga da Cunha to lead it. The unit expands on Itaú’s existing digital asset offerings, including a Bitcoin ETF and a retirement fund with exposure to cryptocurrencies.